Lots of big moves for the dollar last week! Think the HLHB caught some of the action? Here are the numbers!
Before we get to the numbers, read all about my HLHB Trend Catcher System if this is your first time hearing about it!
Basically, I’m catching trends whenever the 5 EMA crosses above or below the 10 EMA. A trade is only valid if RSI crosses above or below the 50.00 mark when the signal pops up. And in this version, I’m adding ADX>25 to weed out the fakeouts.
As for stops, I’ll continue to use a 150-pip trailing stop and a profit target of 400 pips. This might change in the future, but I’ll stick to this one for now.
Oh, and as mentioned before, I’m switching back to applying the HLHB system to the 1-hour time frame. Using 4-hour in Q1 2017 and Q2 2017 wasn’t bad, but I think using this trend-catcher on the 1-hour could yield better results.
USD/JPYUnfortunately, the losing streak is still on like Donkey Kong for the HLHB. As you can see, the system was actually on the other side of the trade on EUR/USD when it yielded a BUY signal days before the pair dropped like there’s no tomorrow.
It also missed a chunk of GBP/USD’s action when it yielded a SELL signal only after the pair’s selling pressure had lost momentum from the start of the week.
Finally, the HLHB System did not yield any signal on USD/JPY even as it broke a recognizable range and trended lower near the end of the week.
Looks like the HLHB is finding it hard to fulfill its job to catch intraweek trends, huh? Think I should change my parameters?
Or should I stick with the system and see how it goes until the end of the year?